Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Electrical Components & Equipment industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Electrical Components & Equipment Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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5 Undervalued Electrical Components & Equipment Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Electrical Components & Equipment industry for Thursday, March 14, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electrical Components & Equipment industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Altex Industries, Inc.’s Value Grade

Value Grade:

Altex Industries, Inc. is a holding company. The Company, through its operating subsidiary, Altex Oil Corporation (AOC), owns interests in onshore oil and gas properties, has bought and sold producing oil and gas properties. The Company has also participated in the drilling of exploratory and development wells, and in recompletions of existing wells. All of AOC's interests are in properties operated by others. The operators of producing properties in which AOC has an interest sell produced oil and gas to refiners, pipeline operators, and processing plants. The Company's estimated reserves are 1,300 barrels of developed oil reserves associated with its 4.4% override in the Glo Field in Campbell County, Wyoming. The Company owns small mineral interests in Utah. All the Company's production is located in Utah and Wyoming.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Altex Industries, Inc. has a Value Score of 81, which is considered to be undervalued.

Now, let’s assess Altex Industries, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 0.1, when compared to the industry median of 12.8, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Altex Industries, Inc.’s shareholder yield is higher than its industry median ratio of (0.89%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Altex Industries, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.22. This could make Altex Industries, Inc. more attractive to investors looking for a new addition to their portfolio.

Applied UV Inc’s Value Grade

Value Grade:

Applied UV, Inc. is a sales and marketing company. The Company develops, acquires, markets, and sells surface and air disinfection technology focused on improving indoor air quality (IAQ), specialty LED lighting, luxury mirrors, and commercial furnishings, all of which serve clients globally in the healthcare, commercial & public venue, hospitality, food preservation, cannabis, education, and winery vertical markets. Its disinfectant segment is engaged in the design, manufacture, assembly, and distribution of a suite of air (fixed and mobile) and surface disinfecting systems for use in healthcare, hospitality, food preservation, education, and winery vertical markets. Its hospitality segment is engaged in the manufacture of fine mirrors and custom furniture specifically for the hospitality and retail industries. The Company has two wholly owned subsidiaries: SteriLumen, Inc., and Munn Works, LLC. SteriLumen owns and markets a portfolio of products with pathogen elimination technology.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Applied UV Inc has a Value Score of 78, which is considered to be undervalued.

Applied UV Inc’s price-to-book ratio is higher than its peers. This could make Applied UV Inc less attractive for value investors when compared to the industry median at 2.22.

You can read more about Applied UV Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Burnham Holdings Inc’s Value Grade

Value Grade:

Burnham Holdings, Inc. is a holding company of a group of subsidiaries that service the heating, ventilating, and air conditioning (HVAC) market segment. The Company's subsidiaries are domestic manufacturers of boilers and related HVAC products and accessories, including advanced control systems, furnaces, radiators, and air conditioning systems for residential, commercial, and industrial applications. Its residential subsidiaries provide interior comfort solutions for homes and small buildings. Its commercial heating applications include military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. Its industrial applications include any project where steam or hot water is needed. Its product offerings include a range of cast iron, stainless steel, fire-tube, water-tube, and copper-tube boilers, as well as boiler room accessories, for commercial and industrial markets.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Burnham Holdings Inc has a Value Score of 99, which is considered to be undervalued.

Burnham Holdings Inc’s price-earnings ratio is 5.5 compared to the industry median at 21.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Burnham Holdings Inc more attractive for value investors.

Burnham Holdings Inc’s price-to-book ratio is higher than its peers. This could make Burnham Holdings Inc less attractive for value investors when compared to the industry median at 2.22.

You can read more about Burnham Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Charge Enterprises Inc’s Value Grade

Value Grade:

Charge Enterprises, Inc. is an electrical, broadband and electric vehicle (EV) charging infrastructure company. The Company provides clients with end-to-end project management services, from advising, designing, engineering, acquiring and installing equipment, to monitoring, servicing, and maintenance. Its segments include infrastructure and telecommunications. The Company's infrastructure segment comprises various offerings, such as broadband and wireless, electrical contracting services, electric vehicle charging and fleet services. Its telecommunications segment provides routing of voice, data, and short message services (SMS) to carriers and mobile network operators (MNO) globally and operates through its wholly owned subsidiary, PTGi International Carrier Services, Inc. The Company operates a global telecommunications network consisting of domestic switching and related peripheral equipment, carrier-grade routers, and switches for Internet and circuit-based services.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Charge Enterprises Inc has a Value Score of 92, which is considered to be undervalued.

Charge Enterprises Inc’s price-to-book ratio is higher than its peers. This could make Charge Enterprises Inc less attractive for value investors when compared to the industry median at 2.22.

You can read more about Charge Enterprises Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Preformed Line Products Company’s Value Grade

Value Grade:

Preformed Line Products Company is a designer and manufacturer of products and systems employed in the construction and maintenance of overhead, ground-mounted and underground networks for energy, telecommunication, cable, data communication and other similar industries. It provides formed wire solutions, connectors, fiber optic and copper splice closures, solar hardware mounting applications, and electric vehicle charging station foundations. Its products include energy products, communications products, and special industry products. The energy products are used for supporting, protecting, terminating and splicing transmission and distribution lines as well as bolted, welded, and compressed connectors for substations. The communications products include rugged outside plant (OSP) closures to protect and support wireline and wireless networks. The special industry products include hardware assemblies, pole line hardware, plastic products, and interior/exterior connectors.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Preformed Line Products Company has a Value Score of 79, which is considered to be undervalued.

Preformed Line Products Company’s price-earnings ratio is 10.2 compared to the industry median at 21.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Preformed Line Products Company more attractive for value investors.

Preformed Line Products Company’s price-to-book ratio is higher than its peers. This could make Preformed Line Products Company less attractive for value investors when compared to the industry median at 2.22.

You can read more about Preformed Line Products Company’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Electrical Components & Equipment Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Electrical Components & Equipment stocks as well as other industrys.

Choosing Which of the 5 Best Electrical Components & Equipment Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Altex Industries, Inc. stock has a Value Grade of A.
• Applied UV Inc stock has a Value Grade of B.
• Burnham Holdings Inc stock has a Value Grade of A.
• Charge Enterprises Inc stock has a Value Grade of A.
• Preformed Line Products Company stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 undervalued stocks in the Electrical Components & Equipment industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Electrical Components & Equipment Stocks

Want to learn more about Electrical Components & Equipment stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 5 Undervalued Electrical Components & Equipment Stocks for Thursday, March 14
• 4 Undervalued Electrical Components & Equipment Stocks for Wednesday, March 13
• Why Enovix Corp’s (ENVX) Stock Is Down 12.08%
• Why Fluence Energy Inc’s (FLNC) Stock Is Down 5.67%

AAII Disclaimer

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